Tuesday, 15th June, 2021
Tuesday, 15th June, 2021

G7 countries reach deal to tax big multinationals

The United States, Britain and other leading nations reached a landmark deal on Saturday to pursue higher global taxation on multinational businesses such as Google, Apple and Amazon.

In a move that could raise hundreds of billions of dollars to help them cope with the aftermath of COVID-19, the Group of Seven large advanced economies agreed to back a minimum global corporate rate of at least 15 per cent and for companies to pay more tax in the markets where they sell goods and services.

“G7 finance ministers have reached a historic agreement to reform the global tax system to make it fit for the global digital age,” British finance minister Rishi Sunak said after chairing a two-day meeting in London.

Canada’s Finance Minister Chrystia Freeland said in a tweet that multinational corporations “need to pay their fair share of taxes,” adding that the G7 has now “outlined a path to make this possible.”

“This is good news for Canadians and Canadian businesses, and will ensure a fair and level playing field for them in the global economy,” she wrote.

U.S. Treasury Secretary Janet Yellen said the “significant, unprecedented commitment” would end what she called a race to the bottom on global taxation.

The deal, which was years in the making, also promises to end national digital services taxes levied by Britain and other European countries which the United States said unfairly targeted U.S. technology giants.

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